Big Transactions: No More Scrutiny If It Matches with Your Return of Income

As per the new amendments in Finance Bill 2017, Income Tax Department now can have access to last 6 Assessment Years Income tax returns of an Assessee i.e. Income Tax Department can conduct Scrutiny Income Tax Returns of last 6 assessment years and this limit was proposed to increase up-to last 10 Assessment Years in Budget for 2017-18. As per Department’s Clean Money, Black Money is the main target and with the help of this step tax evasion can be unearthed as form April 1, 2017. Income tax Department can have access to the Books of Accounts of an Assessee i.e. Assessee’s Books of Accounts can be reopened by the taxmen back till 2007.

Now Big Transactions cannot be put under Scrutiny automatically i.e. Income Tax Department will now have to ask questions from Assessee for understanding his/her explanations regarding his/her Books of Accounts. It is very beneficial for salaried employees as there will be no more unnecessary harassment to them.

High Level Meeting was held by CBDT for reviewing conditions for scrutiny. Income Tax Department can now issue notice to those Assesses whose Books of Accounts unearths any Undisclosed Deposits or Escaped Assessment amount to Rs. 50 lakh or more in a year in aggregate of four Assessment Years.

Operation Clean Money is doing at its best as till now 60,000 individuals have been identified who have evaded tax. This effort has resulted in the shifting of burden from General Scrutiny to Limited Scrutiny.

As per the conclusion of such efforts if any Assessee is found to have unexplained investment or where the explanation is not satisfactory then the Assessee can be taxed on the value of Unexplained Investment.